Mission Critical Skill: CNC Machinist

This special feature of the Labor Market Trends (LMT) provides information on the current labor market situation in the aerospace products and parts manufacturing industry particularly the occupation CNC (Computer Numerical Control) Machinist, recently identified as a Mission Critical Skill (MCS).

Steadfast advancements and innovations in modern technology have rendered the occupation CNC Machinist as one of the in-demand jobs in the aerospace parts and products manufacturing industry. Often working in mass production facilities and machinist shops, CNC machinists are in charge of programming, setting up, and operating CNC machines to cut, shape, and form metal parts and castings. These metal parts and castings are normally used to assemble new type or breed of machines and equipment that could process a variety of goods such as food and clothing, as well as to produce aerospace and automobile parts.

According to the Project Jobsfit: The DOLE 2020 Vision, Machinist is an in-demand and hard-to-fill occupation under the manufacturing industry, one of

the industries identified as a Key Employment Generator or KEG (see Tables 1 and 2). It was also recently considered to be under Mission Critical Skills, having met the conditions: that it is an absolute and necessary skill for the industry; that it takes a long time to produce; and that it cannot be easily replaced.

TABLE 1. Skills In-demand in Production/Manufacturing and Related Workers: 2010-2020Major Occupational Category Industry/Sector/Skill

Production and related workers *Constr uction workers, aluminum instal lers, carpenters, concrete finishers, draftsmen, drillers, electric/mechanical assistants, electricians, erectors, fabricators, foremen, heavy equipment operators, helpers/watchmen, mason, pipefitters, plaster painters, plasterers, plumbers, riggers, safety officers, welders, mechanics

*Oil and Gas: oil and gas workers: instrumentation workers, engineers, welders, pipe f itters, and telecommunication technicians

*Production/Manufacturing: electronic workers, metal workers, quality control inspectors

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Source: Project Jobsfit.

TABLE 2. In-demand and Hard-to-fill Occupations in Production/Manufacturing and Related WorkersIn-Demand Hard-to-Fill Equivalent TVET Qualifications

Machine Operators Machinist - Machining NC I, NC II, NC III

- Press Machine Operations NC I

- Tool and Die Making NC II

- CAD CAM Operations NC III

- CNC Lathe Machining Operations NC II, NC III

- CNC Milling Machine Operations NC II, NC III

Source: Project JobsFit.

Employment OutlookThe manufacturing industry employs majority of the machinists in the workforce. Most of the jobs available are concentrated in the metal manufacturing and fabrication of plastic products and transportation equipment. According to the National Statistics Office (NSO), the manufacturing industry comprises 31.5% of the total workforce in 2008. Almost half of the total revenues amounting to PhP 3.16 trillion come from the manufacturing sector as well.

The international demand for skilled occupations like the CNC Machinist and related professions will continue for the next 5-10 years, as indicated in the Philippine Development Plan (2011-2016). To date, there are 1,508 requirements for said positions (see Table 3).

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Entry Requirements and ProgressionEducationAlthough employers generally prefer to hire workers with a highschool diploma, having attended short vocational courses in operating metal and plastic machines or having acquired experience through on-the-job training (OJT) which is provided by most companies for entry-level workers is enough to become a CNC Machinist. Entry-level Machinists should have a solid background in mathematics like Algebra and Trigonometry, knows basic computer skills, and has a very good understanding of electronics especially for those who intend to be service/repair technicians of CNC machines. Entrants should also know basic interpretation of technical drawings as well as knowledge of safety standards for equipment being run.

Training and CertificationEmployment opportunities can be improved by acquiring a new set of skills. Trainings through apprenticeships, post-secondary programs or informally on the job can help advance one's career. Although it is not required, certification can also improve one's competence and can attract potential employers. With enough training, experienced Machinists can eventually advance to supervisory or administrative positions in their company.

SalaryAn entry-level CNC Machinist earns a salary of Php 15,000 to Php 20,000 a month. For workers deployed in countries like Australia, Canada, and United Arab Emirates, majority can earn a monthly salary of Php 150,000 to Php 200,000.

The standards in aerospace manufacturing are considered to be far higher than those skills in the metals and engineering sector. Only few employers in the country have CNC Machinists. Some industry players in the aerospace technology have machining related skills under the entry/junior levels category.

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Moog Inc., an American company, is one of those employers experiencing recruitment problems due to the low supply of CNC Machinists. It has a facility in Baguio City Economic Zone, and is a leading designer, manufacturer and distributor of devices and applications used in the aerospace parts and products manufacturing industry. It currently manufactures major components and hydraulic control systems that actuate the flight controls of commercial aircrafts of Boeing and Airbus, two of the world’s biggest aircraft manufacturers. The company's workforce has skills in machining as well as in assembly and testing (servo valve actuator technicians and product engineering) which are specific to aerospace manufacturing, and only Moog Baguio produces such skills in the Philippines.

Labor Market SituationThere are very few skilled CNC Machinists available in the current labor market due to high cost of investment in training to attain the required skills being hard-to-fill occupation. Specific machining skills (Level I) identified (CNC Machining, CNC Programming, manufacturing engineering, CNC machine repair/maintenance) are considered to be at the higher level technology and are still relatively uncommon in the Philippines.

TABLE 4. Players in the Aerospace Industry

Company Name Location Number ofSkilled Workforce

Neito Sieki Manufacturing Corp. Quezon City 180Applied Machining Corporation Sta. Rosa, Laguna 70

Famous Secret Precision Machining Inc. Cavite 330DJ Aerospace Subic Bay 54

JFS Precision Technology Baguio

TABLE 3. Number of Job Orders for CNC Machinist and Related Positions, 2010-2012Position Country 2010 2011 2012

Machinist CNC, Machinist CNC Lathe, Machinist CNC Mill, Machinist Prog. CNC Programmer

Australia, New Zealand, UAE, Qatar, Malaysia, Canada, Ghana, and Saudi Arabia 28 57 44

Machinist (Asst., Fabricator, Fitter, Helper, Operator, Supervisor, Technician, Welder)

Australia, Angola, Bahrain, Cameroon, Canada, Congo, Cuba, Denmark, Ethiopia, Fiji, Guam, Japan, Kuwait, Libya, Madagascar, Malaysia, Morocco, New Zealand, PNG, Singapore, Sudan, Sweden, Turks & Caicos Is., Oman, UK, Qatar, KSA, UAE, Thailand,

531 921 697

Fabricator Metal, Mechanical Fitter, Millwright, Polisher Metal

Angola, Australia, Bahrain, Botswana, Brunei, Congo, East Timor, Eritrea, Ethiopia, Ghana, Kuwait, Madagascar, Malaysia, Mozambique, PNG, Qatar, KSA, UAE, Russia, New Caledonia, New Zealand, Sierra Leone, Vietnam, Indonesia, Norway, Bahamas

927 633 767

Total 1,486 1,611 1,508 Source: POEA.

Although there are in-house and on-the-job training available, there is no institution in the country that provides technical and vocational training in a systematic basis. There is also the challenge of developing talent/skills to the highly-skilled level (Grade 25) which normally takes 60 months or 5 years. To date, there are sixy-one (61) TVET providers offering Machining NC I, II, and III.

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Issues Domestic

Cost of Education and Training

The basic educational requirement for a Machinist is at least a high school graduate with six (6) months of machine shop vocational experience or an equivalent of 2.5 years of experience; it takes an average of four (4) years hands-on experience to gain expertise on said skill (see Table 5). Training duration ranges from 337 hours to one-and-half years of training with fees ranging from PhP 4,000 to as high as PhP 40,450.

TABLE 5. Actual Time Experience of CNC Machinist in Moog Baguio

Level/Phase Grade Months Cumulative1 Entry Level Machinist 23 18 182 Skilled Machinist 24 18 363 Highly Skilled Machinist 25 24 604 Lead Man Machinist 26 24 84

Source: Moog Baguio.

Source: Jobstreet Website, 23 December 2011.

FIGURE 1. Qualification Requirements for a Machinist

In order to address the demand for skilled workers, government-funded initiatives were set in place for CNC Machinists and related professions by training them how to operate CNC Machines used in many countries. In 2002, Technical Education and Skills Development Authority (TESDA), with funding assistance from the government of Austria, converted their TESDA regional training centers to Centers of Excellence in Modern Manufacturing Technologies (CEMMT). Seven (7) training centers in the country were identified as CEMMT: TESDA Training Center Taguig Campus Enterprise (TTCTCE), RTC-Baguio City, RTC-Batangas, New Lucena Polytechnic College, RTC-Talisay, RTC-Cebu, and RTC-Korea Philippines Vocational Training Center, Davao City. The project was completed in 2006 producing a total of 1,987 graduates.

In 2007, TESDA established a training partnership with Moog Baguio on CNC Machinist. In a span of four (4) years, the partnership produced 275 CNC Machinists, an output way below the annual demand of 131 workers (CNC and EDM combined).

On 26 March 2012, under Administrative Order No. 105, Series of 2012, a Technical Working Group on Mission Critical Skills (MCS) was formed comprised of representatives from POEA, TESDA, Institute for Labor Studies (ILS), Bureau of Local Employment (BLE), and Professional Regulations Commission (PRC). The group was tasked to formulate an analytical framework to be used in determining the shortage of skills in the metals industry as well as to recommend measures to assist the viability of industries in employing skilled manpower.

On 10 April 2012, DOLE issued Memorandum Circular No. 2, Series of 2012 identifying the CNC Machinist as part of the Mission Critical Skills category and requiring the skilled worker to submit a six (6) month notice prior to resignation. The issuance was made to be able to give companies and training institutions especially those who produce skills in partnership with TESDA, ample time to board replacements and replenish their manpower. Memorandum Circular No. 3, Series of 2012,

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Labor Market Information

Evident in the low turnout of enrollees in the TechVoc programs, it can be noted that there is insufficient labor market information that promotes this type of occupation (CNC Machinist), especially in the areas and industries where much of the skills are needed. Very few are informed about the viable career options in aerospace parts and products manufacturing industry.

Overseas

Piracy

There are reports of massive drive by recruitment agencies to recruit CNC Machinist for overseas employment. Skilled CNC Machinists that were trained for years would resign and move to countries that offer higher salaries like the USA, Canada, and Australia. Overseas workers could earn Php 150,000 to as high as Php 300,000 a month. Those targeted are skilled workers that have acquired training abroad, usually at the expense of their employers.

Brain Drain

A prevailing issue, brain drain is an effect of piracy, poaching, and other factors that entice or induce Filipino professionals and skilled workers to migrate and look for better opportunities abroad. It has caused the state of labor supply for qualified professionals and skilled workers to dwindle overtime.

Government Response

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Sources:MOOG Controls CorporationNational Statistics OfficePhilippine Institute for Development StudiesPhilippine Overseas Employment AdministrationProject JobsFit DOLE 2020 VisionTechnical Education and Skills Development AuthorityThe Strategic Importance of the Philippine Manufacturing Sector (Batungbacal, 2011)

Recommendations

Educational Reform for Skills Development

According to a study done by the Philippine Institute for Development Studies, to increase labor productivity and viability of the manufacturing sector, the government needs to establish an educational reform for skills development.

The Department of Science and Technology-Metals Industry Research and Development Center (DOST-MIRDC) proposed a project entitled, "Development and Implementation of Appropriate Training Curriculum Design for CNC Machine Tool programming and Operations as Human Resource Intervention for the Sustainable Growth, Productivity and Competitiveness of the Metals and Engineering Sector.” The project aims to address the brain drain of CNC Machinist which has been identified as MCS. With an initial approved funding of PhP 7 million, the project would cover the first batch of trained CNC Machinists; a second trance amounting to PhP 40 million for the purchase of CNC machine tools and conduct of training for succeeding batches will be allocated next year. A total of 400 trained CNC Machinists is targeted for its first year. Participating organizations for the program include TESDA, industry associations, and public and private traning institutions.

Intensifying Labor Market Information Advocacy Easily accessible labor market information is an important tool in increasing public awareness of the current labor market situation in the country, and in helping them make informed career decisions. To address insufficiencies, the DOLE and TESDA were tasked to intensify their dissemination of LMI advocacy on the industry particularly on CNC Machinist. Special publications focusing on CNC Machinists shall be prepared by BLE to be distributed to DOLE Regional offices, local government units and other clients.

was subsequently issued by POEA to expand the Mission Critical Skill list to include CNC Machinist such as those but not limited to workers employed at PEZA-registered companies and similar employers producing parts for Boeing and Airbus aircrafts. Both issuances were published in two (2) leading newspapers of general circulation, the Philippine Daily Inquirer and the Philippine Star.

FIGURE 2. BLE's LMI Publications

Writers Editorial Board Ms. Jasper Joy Bayog Director Maria Criselda Sy Ms. Ruth R. Rodriguez Ms. Ruth R. Rodriguez

Layout Artists Ms. Jasper Joy Bayog Mr. Michael MaghariMs. Joyce Pagalilawan